Islamabad, October 4, 2023 – Pakistan’s customs authorities have revealed that they detected money laundering activities worth a staggering Rs 69.5 billion over the past five years.
The disclosure was made during a meeting of the Senate Standing Committee on Finance and Revenue held in Islamabad.
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The customs authorities, in a briefing to the committee, stated that inspection teams had uncovered instances of money laundering totaling Rs 69.5 billion, implicating 63 individuals in these illicit financial activities.
Zeba Hai Azhar, Member Customs, provided details during the meeting, which was chaired by Senator Saleem Mandviwala. She highlighted that among those involved in money laundering schemes, nearly seven individuals were linked to the solar equipment import business and had smuggled billions of rupees to various countries.
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The committee also discussed reports concerning extensive money laundering by solar panel and equipment importers. It was revealed that two accused individuals had deposited a substantial Rs 26 billion in cash for the import of solar panels.
Customs officials confirmed that First Information Reports (FIRs) had been filed against six accused individuals for their alleged involvement in money laundering, which had caused significant financial losses to the national exchequer.
Zeba Hai Azhar further emphasized that approximately 59 percent of imports were conducted through green channels, and most of these transactions were cleared in the Post Clear Audit department of the Federal Board of Revenue (FBR).
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In another development, Deputy Governor of the State Bank of Pakistan (SBP), Inayat Hussain, provided information regarding the Deposits Protection Corporation (DPC). He noted that depositors’ funds now had legal protection worth Rs 500,000, a significant increase from the previous limit of Rs 250,000. This revised amount provides coverage for 94 percent of depositors under the SBP subsidiary, Deposits Protection Corporation (DPC).
Inayat Hussain explained that all scheduled banks operating in Pakistan were required to be members of the DPC to ensure that deposits in these banks fell under the umbrella of the deposit protection mechanism.
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Regarding the challenges faced by Politically Exposed Persons (PEP) when opening bank accounts, SBP officials informed the committee that each bank had appointed a focal person to facilitate PEP during the account opening process. Additionally, the SBP itself had designated a focal person to address queries related to account openings and instructed banks to expedite the procedure.
Senator Kamil Ali Agha expressed concerns about the difficulties PEP faced in opening accounts, stating that it amounted to a violation of fundamental human rights and the constitution, specifically referencing Article 10. He called for action against officials and individuals obstructing account openings for PEP.
